Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Another milestone approval in the advancing towards GSA signature and equity sell down of the licence.
Whilst slow and somewhat frustrating boxes being ticked. This is of major significance to bringing the project on stream.
TLBLDN...plainly have not read any of the recent RNS's.
"The Board remains committed to generating activity and newsflow in the weeks and months
ahead and are seeking potentially to take the Company to another level through continued
drilling success."
Be under no illusion if there is significant news to announce ONHYM will be controlling the narrative and timing for when this goes public.
They have history of getting it wrong. This time, based on the scale and size of the prize of Guercif they will want to be 100% sure of the facts.
PG can control the geological narrative with his expertise, ONHYM and Afriquia Gas will want to control the commercial narrative and significance of discovery and monetisation. Remember the PM is now heavily involved.
From 2 May 23 RNS - sales worth to EME $266m
Empyrean Energy plc (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to provide an update on the Mako gas field development within the Duyung PSC ("Mako"), following information provided on 1 May in the quarterly report of Conrad Asia Energy Ltd, Operator of the Mako gas field ('Conrad").
Highlights
· Negotiation of key terms of the Mako gas sales agreement between a Singaporean buyer and the Indonesian regulator
(SKKMigas) are expected to be finalised during the second quarter, with Mako being a key strategic gas asset for both
countries.
· The Mako gas field is the largest undeveloped and fully appraised gas field in the West Natuna Basin. Gas is exported
from the basin by pipeline to Singapore. The competent person's report commissioned as part of Conrad's IPO late last
year estimated that Mako would generate gas sales of US$2.4 billion net to Conrad's 76.5% interest (~equivalent to
US$266m net to Empyrean).
· Conrad has engaged a global investment bank with a proven track record in similar transactions to lead a farm-down
process for the divestment of a portion of its interest in the Duyung Production Sharing Contract ("PSC"). Bids are
expected to be received during the second quarter and the industry response to date has been encouraging.
· Empyrean, which holds an 8.5% interest in the Duyung PSC, and through certain drag along/ tag along clauses that exist
in the Duyung Joint Operating Agreement will participate pro rata in the farm-down process. Empyrean has
communicated to Conrad and the global investment bank that it will also entertain bids for its entire 8.5% interest.
Market capital today at 0.50p - £6.4m. What is Mako really worth for them when a deal to sell licence is crystallised?
£10m, £15m , £20m???
I am going to hazard a guess and say it's worth a lot more than todays market capital of £6.4m. As a minimum double todays value and hence share price.
Comment from todays RNS:
"Whilst this has taken longer than anyone envisaged, we are delighted with the improved pricing formula for gas sales which should have positive implications for the Duyung PSC/ Mako sell-down efforts."
What will this have done to any take out price for the whole licence? Only a matter of time now until we know. At todays share price plenty of room for upside.
Yes and price is now 0.44p
Whilst never welcome by most, todays discounted placing has not had the normal drop to placing price. In fact on the contrary we are seeing buyers above the placing place. Whilst its been a slow burn on monetising Mako it does now appear that Conrad are moving towards final GSA signing and sell down of some of the licence. This will bode well for EME who will receive a cash injection to fund the drilling of Topaz.
The next few months are going to be pivotal for the company.
Here is my stab at how future events may unfold.
1. Testing is underway and we are half way through a planned 14 day Phase 1 program. Certain folks have been made aware that testing is underway so no reason to doubt we have slippage on timeline. So w/c 12 Feb onwards we could potentially see some flow rate details.
2. Now prior to any market announcement ONHYM along with Afriquia Gas will want to verify the detail. Why? Because ONHYM have egg on their face regarding the Anchois debacle and I’m sure the Prime Minister with his involvement in Afriquia Gas will not want a repeat of Anchois. Predator after all are being very supportive with ONHYM and helping save face.
3. Assuming the Phase 1 zones tested flow above 1mmscfd an application for an exploitation concession will commence immediately. I’m fairly sure Predator will have been working behind the scenes to ensure all the leeway is in place for this to happen as smoothly as possible. So application submitted by end of first week March.
4. Phase 2 Sandjet testing to commence immediately after Phase 1. RNS already confirms this as early Feb through up early March and is planned to take 21 days. So, assuming Phase 1 finishes by 11 Feb (14 days from the 29 Jan), Phase 2 to commence w/c 12 Feb.
No one knows for sure exact dates/timings but the above gives an indication on what is known publicly. I suspect ONHYM will be controlling all the narrative and we won’t know about any leaks. Guercif is of monumental importance to Morocco and they won’t want a repeat of Anchois. February is going to get very interesting share price wise, and again through reputable sources we know institutions are buying.
I have received confirmation today that the rod pump has been installed, as per previous posters. The well clean up continues. Company are stabilising flow rates and all is going to plan. There are no issues. Market will be updated in due course.
What if simultaneously to the MoU ratification there are also NDA's and exclusivity agreements in place with potential suitors, requiring details of any potential contractual obligations to sell gas? Sometimes we need to consider what is NOT being said, because for reasons of confidentiality it cant be.
PG has openly articulated and worded as such in RNS's that he would like to commence a Morrocan exit strategy and monetise the asset. He has also been very vocal about not needing to test to realise value, albeit we are led to believe testing is due to commence soon after the MoU is finalised.
In business, strategic directions change driven by various matters. Some you are in control of and others you are not.
None of us know really the exact detail of what's going on with Morroco currently, other than what is officially communicated via RNS. That's not to say other matters or strategy isn't in play.
Keith …you know my thinking is aligned. I also have a view that simultaneous to the MoU agreement awaiting ratification, that other conversations are taking place with a potential suitor/s. This would make sense as so far as any deal structure is concerned albeit creates further delays due to tri-part discussions. Plus add in final sanctioning from the ONHYM.
Whilst none of us like the ambiguity of news flow, change in direction/strategy and unforeseen or inevitable delays, the fact remains the gas is there, and going nowhere.